ANZ has introduced a significant support package for small business and home loan customers, potentially injecting $6 billion into the Australian economy. This initiative aims to aid recovery efforts during the ongoing COVID-19 crisis.
The package includes reductions in fixed and variable interest rates for both small businesses and home loan customers. For new loans, small businesses will see a reduction of 0.80% per annum, while home loan customers will experience a decrease of 0.49% per annum. Variable rates for small businesses will drop by 0.25% per annum, and home loan rates will be reduced by 0.15% per annum.
ANZ is also offering its small and medium business customers, as well as impacted home loan customers, the option to defer loan repayments for up to six months.
Key points of the package include:
- A decrease in variable interest rates for small business loans in Australia by 0.25% per annum from March 27, 2020.
- Impacted customers can request a six-month deferral on term loan repayments with capitalized interest.
- Temporary increases in overdraft facilities are available for up to 12 months.
- A reduction of 0.80% per annum to a new two and three-year fixed rate of 2.59% per annum for secured small business loans up to $1 million effective April 3, 2020.
For home loan customers:
- A decrease in variable interest rates across all indices by 0.15% per annum from March 27, 2020.
- Introduction of a two-year fixed rate of 2.19% per annum for owner occupiers paying principal and interest.
- Customers can request deferral of home loan repayments for up to six months with a review at three months; interest will be capitalized.
ANZ CEO Shayne Elliott stated: “Our package supports Australian business and the people who work for them. We understand the impact this crisis is having and ANZ will play a major role in backing Australia’s economy and our customers through these challenging times."
Elliott added: “We have been working with both the Federal Government and our regulators to keep money flowing through the economy and we’ll do all we can to keep businesses afloat and Australians employed, as well as reducing the financial pressure on households.”
He emphasized that reducing variable home loan and small business rates is essential: “Our decision...is the right thing to do for our existing customers...particularly those who are self-employed.”
The bank also offers temporary overdraft facility increases for its small and medium-sized enterprise clients over a year-long period.
ANZ acknowledges that some severely impacted businesses may require specialized support tailored to their specific needs.
Home loan customers affected by COVID-19 can access financial assistance including repayment deferrals where unpaid interest is capitalized during this period.
For more information on these initiatives or assistance options, ANZ provides dedicated contact numbers available from Monday on their website anz.com.